PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Novation is the substitution of a new party or obligation for an existing one with the agreement of the necessary parties and release of the replaced party or duty.
Contracts
Contract changes and transfer
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Novation mean?
Novation is the substitution of a new party or obligation for an existing one with the agreement of the necessary parties and release of the replaced party or duty.
How do you separate the nearest exam answer?
Novation includes consent and release. Assignment transfers rights but does not automatically discharge the assignor's obligations.
What changes or stays the same in Georgia?
The national contract rule applies in Georgia. Look for clear facts showing the obligee agreed to the substitution and released the original obligor.
A seller agrees that a replacement buyer will assume the purchase duties and expressly releases the original buyer from the contract.
Performance by a substitute is not enough if the original party remains liable.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A buyer can no longer close. The seller signs an agreement accepting a replacement buyer who takes over all the purchase duties and expressly releasing the original buyer. What has occurred?
- A
Assignment
- B
Novation
- C
Rescission
- D
Amendment
Novation substitutes a new party or obligation with the agreement of the parties and releases the one being replaced. The express release is what separates it from an assignment, which transfers rights but leaves the original party liable. Rescission would unwind the deal rather than keep it going with a new buyer.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Contracts complete lesson
https://www.passgeorgiarealestate.com/study-guide/contracts/purchase-agreements
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